CBN clamps down on erring micro finance banks, other financial firms, revoke 139 licenses

The Central Bank of Nigeria (CBN) has revoked the licences of 139 microfinance banks in the country, as well as four primary mortgage banks and three finance companies.

This was disclosed in the official gazette of the Federal Government, which was published on the website of the CBN on Tuesday.

According to the gazette, the licences of the financial institutions were revoked because they ceased to carry on in Nigeria, the type of business for which their licences were issued for a continuous period of six months.

In a similar development, the CBN said it also revoked the operating licences of 132 companies operating as Microfinance Banks, Finance Companies and Primary Mortgage Banks. 

Citing the reasons for the revocation, the CBN stated: “The Microfinance Banks, Finance Companies and Primary Mortgage Banks stated in Schedules I, II and III respectively, hereto, have:

“(a) ceased to carry on, in Nigeria, the type of business for which their licences were issued for a continuous period of 6 months.

“(b) Failed to fulfil or comply with the conditions subject to which their licences were granted; or

“(c) Failed to comply with the obligations imposed upon them by the Central Bank of Nigeria in accordance with the provisions of Banks and Other Financial Institutions Act (BOFIA) 2020, Act No. 5.”